The National Board of Revenue (NBR) in Bangladesh has extended the deadline for the submission of income tax returns for individual taxpayers by two months, shifting it to 31 January, 2023, instead of the original deadline of 30 November, 2023.

This decision was made in light of the prevailing political situation of the country.

The tax day would be observed on 31 January, 2023, for individual taxpayers instead of 30 November, 2023, according to an order signed by Md. Mohidul Islam Chowdhury, second secretary of tax law at the NBR.

For company taxpayers under the Income Tax Act, 2023, the tax day has been extended from 15 January, 2024 to 28 February, 2024.

These adjustments aim to provide taxpayers with additional time to fulfill their tax obligations and address challenges faced in tax preparation amid delays in implementing the new Income Tax Act and the current political scenario.

The decision came after requests from organisations such as the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) and the Dhaka Taxes Bar Association.

The low number of return filers relative to the registered taxpayers in Bangladesh has been a persistent challenge, and these extensions aim to facilitate compliance with the new tax laws and enhance tax filing awareness among the taxpayers.

Last year, the NBR extended the deadline for income tax return submissions until December 31. However, the electronic Tax Identification Number (e-TIN) registration process, initiated in July 2013, aimed to streamline the income tax system in Bangladesh.

Over the past decade, the number of registered taxpayers has grown to around 9.34 million as of September. However, despite this growth, the desired income tax return filings haven’t increased significantly.

Even with return slips being made mandatory for various government services, about 4.50 million registered taxpayers still do not file their returns. This indicates challenges in enforcement, awareness, or other systemic issues.